[Note from editor: The “Mastermind Showcase” highlights companies and news from members of the GEM. Today’s showcase: PropStream]

PropStream consolidates real estate data and tools for investors, agents, brokers, property managers, and other real estate professionals. Users gain access to nationwide property data sourced from county recordings, MLS records, and private data sources, resulting in over 160 million properties in America—including distressed and off-market properties. Records include ownership info, property characteristics, sales history, MLS details, mortgage info, lien and foreclosure details, and tax info. It has 120+ property search filters for generating targeted leads and marketing lists. 

With its built-in Skip Tracing feature, customers can source homeowner phone numbers, emails, and mailing addresses. It also automatically adds new leads matching search criteria while removing leads that no longer do. Users can also import and update lead lists from other services.

Through PropStream’s marketing features, users can create marketing campaigns and landing pages. Its Rehab Estimator provides estimated labor and material costs based on the project’s category, type, and quality of materials.

In 2021, Stewart Title acquired PropStream for $175M, allowing the company to continue growth while strengthening core competencies.

What we like: PropStream’s large consolidation of data, features, and investor tools and the backing of Stewart Title is hard for competitors to outmatch.

Learn More

The post One Stop Real Estate Investment Software appeared first on GeekEstate Blog.

[Editor’s Note: Below is the full text of our 232th Weekly Transmission, originally delivered direct to the inbox of more than 600 GEM members on November 10th, 2022.]

Discussions about proptech leaders usually start and end with either CoStar or Zillow. Both are formidable proptech companies. CoStar has a monopoly on commercial real estate data, having built a robust legacy business over decades, carved out Apartments.com as a rentals leader, and with heavy investments in residential real estate (acquisition of Homesnap and launch of CitySnap in NYC). Zillow, where I started my career, will always hold a special place in my heart. It is the unquestioned leader in audience size in the United States.

But I’m tired of talking about proptech without even a whiff of the defining company in the category in the conversation. The largest proptech company is rarely mentioned.

It’s Not CoStar. It’s Not Zillow. It’s Not Realtor.com. It’s Not Redfin. It’s Not Opendoor.

It’s Airbnb.

For proof, let’s take a gander at market capitalizations (as of end of day November 8th, 2022):

It doesn’t get any more telling than that. The data doesn’t lie; Airbnb’s business dwarfs both Zillow and CoStar.

Proptech’s unequivocal leader, with $2.9 billion in Q3 2022 revenue and 42% net income margin, is firmly established.

HOSPITALITY AS PROPTECH
But it’s a “travel” company, right?

Wrong. Its central function is a marketplace for homes, rooms, apartments, and even treehouses. Marc Andreessen, one of its earliest investors, publicly said the company would transform real estate … in 2013. That was almost a decade ago, long before a quarter of its business was long-term stays.

Let that sink in. Covid has been a true blessing in disguise for Airbnb. Despite an almost instant 80% drop in the business and massive layoffs, extended stays have been one of the main pillars of Airbnb’s turnaround.

Also serving “travelers,” Rabbu, The Guild, AvantStay, PlaceMakr, Sextant Stays, Mint House, Zeus, Wander, FrontDesk, Vacasa and others are commonly referred to as proptech plays. Meaning there is no case to be made that Airbnb isn’t. After all, its marketplace sits atop the entire short-term rental vertical. I’d argue that without the demand Airbnb built by modernizing homesharing, some—or many—of those businesses would not operate at their current levels.

What if Airbnb expands its marketplace into an app store for proptech businesses? Suddenly Airbnb’s place at the top of the funnel would become both obvious and entrenched—it could serve as a discovery environment that takes a cut of payments and limits fraudulent behavior for both sides. Inclusion in its marketplace would make or break a new company, much like Amazon’s relationship with third party merchants.

THE AMAZON EFFECT
There’s a case to make for Amazon in the proptech leader discussion as well, and it has nothing to do with what most people think of as Amazon’s core business. The company’s smart devices reach almost every home in the country and millions of homeowners and tenants alike speak to Alexa everyday (read my 2017 thoughts), making it among the leaders in bringing technology into the Built World. With HomeBase, SmartRent, and BeHome247 as clearly in the proptech category, it’s impossible to not consider Amazon in the same vein.

It’s a $917 billion dollar corporation with $127 billion in Q3 net sales—$20.5 billion (16%) came from AWS (Q3 Earnings). I can’t figure out from its earnings statements what percentage of overall revenue comes from devices. If you’re a finance whiz and can help, I’d love to hear from you.

Thus, it’s unclear how much the devices business would be worth as a standalone. The business would be valued at $706 billion if you were to carve off AWS’s 16%. I’d perhaps peg devices at 5% of revenue and 12.5% of strategic value (meaning a valuation range of $35.3 to $88.25 billion). But, until we have better data, or until Amazon spins off devices as a standalone entity, let’s bench the Amazon discussion for the time being.

THE UNMATCHED ADVANTAGE
Next time you’re talking proptech, make sure you acknowledge the reality that Airbnb’s valuation factors in its immense strategic advantages.

Airbnb wields a global supply of rental housing across both single-family and multifamily—plus, hotels (a small segment now, but that will grow). Access to the tools and services that plug into Airbnb eases the burden to manage properties, and has generated a list of companies working to handle both houses and hotels as STRs (e.g. Jetstream, UpListing, Hostaway, and Guesty). Plus, as I’ve been saying for years, Airbnb is one database field away from being the largest long-term rentals platform in the world. When that muscle is flexed, it’s going to be a scary day indeed for Zillow and CoStar.

Airbnb boasts the most engaged homeowners of any platform due to financial incentives, and both its supply and demand span far beyond the confines of the United States. Home services, the segment virtually every portal pitches as part of its long-term strategy, is much more in the sights of Airbnb given its engagement levels with owners and tenants alike. The entire home management and maintenance sector could be transformed overnight with Airbnb as a customer acquisition channel.

So, how about that Zillbnb merger? At present valuations (Airbnb 9x Zillow), that acquisition would rock proptech to its very foundations. Like Packy McCormick, I’m beyond excited about the possibilities such a merger would unlock as travel, living, and hospitality continue to blend.[Thank you to Fed Novikov and Nate Smoyer for feedback on this article.]

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The post Proptech’s Leader Has Been Crashing on Our Couch This Whole Time appeared first on GeekEstate Blog.

[Editor’s note: Originally published here.]

It’s a common misconception that Building Information Modeling (BIM) is synonymous with the term Digital Twins. In many cases, BIM is considered a part of the construction process, while the concept of Digital Twins suggests real-time data visualization of maintenance and operations.

Digital Twin has become a buzzword for any type of digital representation, but this is not entirely true. These are complicated models that process thousands of data points simultaneously. A Digital Twin is a united platform designed to visualize and apply analytical controls throughout the life cycle of an entire building.

Some industries, such as transportation, mining, and aviation, have experienced widespread adoption of Digital Twins. There has been significant adoption of this technology in the built environment. This article will delve into several use cases, insights, and optimization options.

A Primer on Building Information Modeling

Building Information Modeling has been part of the landscape since the 1970s. Despite its established history, widespread adoption didn’t occur until the early 2000s, through the innovative efforts of Bentley Systems and Autodesk.

BIM is designed to offer visualization and collaboration during design and construction stages, rather than being applied to maintenance and operations. Instead of creating an exact model of a building in a physical space, it’s used by architects, engineers and construction companies in the design and building stages. The main focus of BIM is to enable all these teams to share information, collaborate and utilize tools that facilitate the process.

BIM provides a new way to pin down spatial relationships through the visualization available during design and prototyping. However, in contrast to Digital Twins, the information model is used for future building projects, rather than ones that already exist.

The Basics of Digital Twins

Many believe that Digital Twins represent a recent technology. It was used as early as the 1960s as a part of space programming systems, gaining attention over the past 20 years. Digital Twins are quickly becoming known as an integral part of tech for anyone who owns or runs a building. It can give you real-time information about the environment without physically being there yourself. Owners can observe how things are running based on how occupants behave and make changes based on those insights.

This is a model that changes over time to create more value the longer the building is operational. BIM is an integral part of the inputs for a Digital Twin, but it can’t answer all the questions that a facility manager might have about how to create fully optimized operations.

Whereas BIM focuses more on buildings, Digital Twins use simulation, machine learning and reasoning to help decision making during the building lifecycle. As Digital Twins grow, it’s expected that assets will include entire organizations. Behaviors, processes, and people will be essential data points that provide more information about an existing environment.

What Digital Twins Provide

Digital Twins are often seen as the best option for managing connected assets and infrastructure, in a fiscally responsible manner that conserves time. As Digital Twins have become more commonplace, expectations for infrastructure standards and facilities have increased. More people are choosing to select innovative IoT (Internet of Things) solutions, rather than rely upon traditional technology.

Currently, Digital Twins are still theoretical in some ways but are blossoming in other applications. The understanding of the technology varies by the end user and the company. However, the basic desire is to increase efficiency and improve sustainable outcomes.

A Digital Twin can help someone understand where value can be derived and provide a direction to move in. Through modeling different scenarios, problems can be identified and resolved before they create issues in a physical space.

Requirements for a Digital Twin

Data capture is the principal factor in implementing a Digital Twin. This begins with collecting data from a building or other object to analyze how different variables impact the construction or manufacturing process. It’s essential to determine and understand what elements will process, store, manage, integrate, and process the data underpinning the Digital Twin.

To break it down further, stakeholders want to gain insight into information and assets, through a full immersive understanding of its potential. This typically begins with a process of visualization. Digital Twins can take several types of data and provide a representation of the asset, so you can not only see it, but also measure how it’s performing, for a true image of what is happening in the physical world.

Success with Digital Twins involves the creation of a set of requirements, and standardization to adopt this innovative technology. Anyone who wants to begin working with Digital Twins should choose a specific application and an underlying project concept.

Kind of Digital Twins and Their Uses

Autodesk has been a long-time user of Digital Twins, specifically for use in architecture, engineering, and construction (AEC). These Digital twins can be used to determine how to design an asset, verify how it’s performing, and evaluate various scenarios, in order to be prepared for the future.

There are five types of Digital Twins noted by Autodesk and understanding each of them can give insight into what this technology is truly capable of.

• Type 1: Descriptive – This twin is visually oriented with editable, live construction and design data. It uses both BIM and 3D models to offer insights.

• Type 2: Informative – This twin has everything mentioned above as well as operations data and sensors to create more timely insights when anything changes within the twin.

• Type 3: Predictive – Twins can collect analytics, contextual data, and real-time data as a combination that is ideal for determining problems.

• Type 4: Comprehensive – The twin in this situation has advanced simulation and modeling capabilities to work with future scenarios that may occur. It also includes prescriptive recommendations and analytics.

• Type 5: Autonomous – The highest level is a twin that can learn new things and make its own decisions through the use of artificial intelligence (AI). It also features 3D visualization and simulation through expanded algorithms.

In the AEC world, Digital Twins include a robust number of services to offer clients. More options often lead to additional clients. The adoption of twins can make a business stand out and offer added value through impressive amounts of relevant data.

Another benefit is time efficiency. It’s easier to reach out to and work with owners on performance expectations and asset use, as well as decide which forms of data should be prioritized to meet current and future goals. Cost savings can also be possible when a Digital Twin is used in tandem with construction and design.

‍Innovation Coming to the World of Digital Twins

Autodesk isn’t the only company that is leaning into Digital Twins hard. Ericsson also provides the option to create Digital Twins. Even Amazon has chosen to make AWS IoT TwinMaker available. This has created a much wider range of options for anyone who wants to test-drive the technology.

Amazon strives to help developers create Digital Twins of real systems, like production lines, factories, industrial machines, and buildings. Ericsson is in the game to help with network expansion, modernization, and deployment. Both are making waves by creating a digital world that anyone can harness for their business needs.

You can see how innovation is happening by looking at current experiences with Digital Twins. For instance, AStar, Singapore’s Agency for Science, Technology, and Research, has worked to equip all their machine equipment with Digital Twins that can make changes as needed without human intervention.

Tesla is also in the Digital Twins landscape and has taken it even further. Every car that comes off the line has a Digital Twin to accompany it. The sensors located in the vehicle send information to the Digital Twin. The latter can then provide you with information about issues that should be modified or examined to avoid mechanical breakdown.

Real-Time Insights and Actual Applications of Digital Twins in Transportation

One of the largest benefits of using Digital Twins is the ability to understand what’s happening in real-time using digital technology. This is a huge change since it’s always been a struggle to determine how well your assets are performing based on the operational choices you make.

Digital Twins provide an ideal tool to bridge the gap and understand how a building or space is used. Many companies are already using this technology to change the way decisions are made and updates are created.

For instance, Buildmedia has created a virtual version of the Wellington City Council. It uses data to get car parking availability, cycle sensor data, air traffic visualizations, and transportation statistics. All these things help make decisions about how infrastructure operates within a city.

Another project by 51 World provides a Digital Twin of a subway station. Nearly 300,000 people use the station each day, making it the busiest in the capital city of China’s Hunan province. The Digital Twin uses a series of motion sensors to determine how many passengers are present at any time. This can be used to direct and optimize traffic.

The transportation sector has also made use of a Digital Twin of Singapore’s Changi Airport. The idea behind this was to visualize and simulate real-time experiences like congestion and traffic flow near terminals. The data is used to improve efficiency, safety, and navigation. Planners and architects can see how substantial changes would affect circumstances before putting them in place.

All these examples give an idea of how Unreal Engine is helping to create outstanding Digital Twins in an important industry. This is just one industry that has seen huge changes through the implementation of Digital Twins and it’s only going to increase as more companies, organizations, and governments realize the benefits possible.

Use of Digital Twins in the Infrastructure World

Another buzzword that everyone is scrambling to understand is the metaverse. The metaverse is meant to be a way to interact with the digital world from the physical one. The proliferation of metaverse applications has allowed Digital Twins to expand in usage as digital replicas of projects become more commonplace.

The metaverse is an exceptional space for infrastructure projects, but it also has its own set of challenges. The needs are different, based on its immense importance, larger cycles, and an extended lifecycle.

For entertainment, applications are possible that couldn’t be implemented in the real world. Infrastructure, on the other hand, needs precision. Digital Twins are part of this in combination with BIM and 3D design data. Real-world data, maps, and point clouds are all a part of the process.

An example of how that can happen can be seen in the ITER project in France. This magnetic fusion facility is researching the possibility of using fusion for energy. Tons of data have been created through the experiments involved in the process. Engineering teams are using various technology programs to simulate reality using digital data and augmented reality (AR).

From 3D models to 4D construction animations and sequencing, everything is then rendered for use with NVIDIA Omnisphere. This led to the introduction of game technology, laser scanners, and cameras to build a more immersive experience.

With everything synchronized and running, data can now be used on several platforms. Combining technologies with Digital Twins has the potential to build accurate simulations with realistic environments, and lighting that can be seen on virtual reality (VR) headsets, tablets, and web browsers.

Final Thoughts

Traditionally oriented, conservative companies have stagnated by using the same tried and true tools and processes. Digitizing processes and building an efficient ecosystem is a fantastic way to break out of the mold. Incorporating Digital Twins into the process could be the path forward to truly understanding and optimizing assets and resources.

Digital Twins are a sustainable and effective method to overcome challenges in a variety of industries. Remote working, increased use of BIM, and digitization work with Digital Twins to revolutionize the way things are accomplished. In the long-term, this could lead to advances that completely revolutionize the way we design, construct, and make use of environments.

The post BIM and Digital Twins: Getting Beyond the Hype appeared first on GeekEstate Blog.

[Note from editor: The “Mastermind Showcase” highlights companies and news from members of the GEM. Today’s showcase: Follow Up Boss]

A CRM that centralizes leads and supports follow-up tools for high-growth real estate businesses, Follow Up Boss provides calling and dialer; individual and group texting; and email for engaging with leads. Everything syncs from agents’ desktops to their phones to keep engagement consistent. It supports lead distribution from 200+ sources, including Zillow, RE/MAX, Homes.com, and Facebook. 

Its Pixel tracking tool provides detailed lead information about what campaign they came from, which listings they viewed, and when they’re actively looking at the site. “Action Plans” enable agents to easily follow up with leads multiple times, and make every follow-up more effective by showing agents who to follow up with, when, and with reminders of the next steps from each lead’s customized plan. When it’s time to move past an Action Plan, Follow Up Boss’ automation sequences nurture long-term relationships, reach out to old leads, and share leads with lending partners. 

The CRM also provides businesses with powerful reports that offer visual overviews of their business’s performance and agent metrics. The Leaderboard feature creates sharable dashboards to display each agent’s appointments, conversations, call attempts, text messages, and emails. And with Follow Up Boss’s shared calendar and access to full conversation history, it’s simple to loop in a teammate or lending partner. 

It’s also an open API and integrates with Google Suite, Office 365, Zapier, Mail Chimp, and more.

What we like: 10 years of integrations and learnings provides a strategic advantage hard for new entrants to compete with. 

Learn More

The post A CRM that Helps You Follow Up appeared first on GeekEstate Blog.

In this week’s founder interview, we’re bringing you Melinda Witmer from Foiye.

Without further ado…

Who are you and what do you do?

My name is Melinda Witmer and I’m the founder & CEO of Foiye, a new social entertainment platform for the home, design, and real estate enthusiast.

Before founding Foiye, I spent 25 years in senior leadership roles at Time Warner Cable (now Spectrum) and HBO. Most recently, I served as TWC’s EVP, Chief Video Officer, where I ran the company’s multibillion-dollar video and content strategy, on demand and online video distribution operations. I also had the opportunity to launch multiple regional sports networks including networks with coverage of the Los Angeles Lakers and Dodgers.

Through my career in media and entertainment, I always had a passion for home design, and I even had a side hustle flipping houses. Now, I’m excited to launch a new venture where I can combine my experience in media with my passion for real estate.

For more than a year, my team and I have been building Foiye, a new digital platform that brings real estate together with home and design entertainment to create an online community for home and interior design enthusiasts, real estate professionals and more.

What problem does your product/service solve?

Real estate agents are unrecognized and undervalued as content creators, storytellers, and talented marketers – millions of people each year view their content – but the platforms that distribute them are focused on transactions and data.

Foiye is a new platform built to provide agents the opportunity to stretch their marketing muscles and showcase their properties with creativity and to connect with consumers who use real estate as a form of entertainment and inspiration.

What are you most excited about right now?

I’m excited by disruption in the marketplace – while it brings stress and uncertainty, in many ways these will be the days of creative change and transformation. There will be many companies and new businesses that emerge from the difficult economic times we are experiencing. Amazing opportunities always emerge on the other side of economic downturns.

What’s next for you?

Raising capital and continuing to build a new experience for people who love real estate – an experience for the dreamers.

What’s a cause you’re passionate about and why? 

I have two passions – homes & animals. I am passionate about supporting large animal rescue – horses, farm animals – and supporting working creatures past their prime.

I am also passionate about low-cost creation of sustainable housing and the creative entrepreneurs and technology that are expanding the possibilities.

Thanks to Melinda for sharing her story. If you’d like to connect, find her on LinkedIn here.

We’re constantly looking for great real estate tech entrepreneurs to feature. If that’s you, please read this post — then drop us a line (community@geekestate.com).

The post Meet The Real Estate Tech Entrepreneur: Melinda Witmer from Foiye appeared first on GeekEstate Blog.

[Note from editor: The “Mastermind Showcase” highlights companies and news from members of the GEM. Today’s showcase: TurboTenant]

The ever-evolving rental world can be daunting for the DIY landlord. From marketing properties online to automating rental payments to screening tenants and more, TurboTenant centralizes tools to simplify finding and retaining tenants for independent landlords, real estate investors, and property managers.

When listing a rental online, users are provided step-by-step guidance and automatic syndication to websites like Zumper, RentPath, Realtor.com, and ApartmentList. Leads are tracked using a dashboard displaying the status of rental applications and allows for communication through direct messages. Landlords receive a tenant’s full rental profile as well as a comprehensive criminal history, eviction history report, and credit report from TransUnion.

Once a vacancy is filled, TurboTenant can be used to set up online rental payments, along with automatic payment options and late fees. Tenants’ payment dashboard includes reminder notifications, receipts, and a rent reporting feature to help them build solid credit.

Landlords also have access to online lease agreements, electronic signatures, document management, maintenance requests, expense tracking, and rental accounting.

What we like: Serves landlords, big and small, with a robust toolset to centralize their rental management process.

Learn More

The post Spreading Rentals Far and Wide While Keeping Leads All in One Place appeared first on GeekEstate Blog.

[Note from editor: The “Mastermind Showcase” highlights companies and news from members of the GEM. Today’s showcase: WellcomeMat]

Video marketing has become a key part of agents, brokers, and real estate companies’ strategies to reach consumers. While virtual showings, floorplans, and 3d models haven’t replaced in-person showings, it has helped consumers realize they don’t need to tour every home.

Enter WellcomeMat: Real estate-focused video marketing and distribution tools for individual real estate professionals, teams, and companies. Users leverage their own domain for publishing video content, sending traffic directly to their own websites and mobile apps, allowing for adhering to customized brand standards and total control of their customers’ experience. WellcomeMat centralizes video scheduling, replacement, and distribution, allowing for scheduled distribution to social networks and syndication channels.

Development teams can use WellcomeMats API to get support from their engineering team and access to their system, allowing users to create custom viewing experiences, add content integration, see reporting statistics, and manage user accounts. WellcomeMat also provides an unbranded tour link to offer an MLS-compliant option for users’ videos.

What we like: Real estate professionals should have a direct-to-consumer marketing position to control their unique content distribution and customer experience. WellcomeMat enables that.

Learn More

The post Centralize Video Marketing Using Your Domain as a Hub appeared first on GeekEstate Blog.

In this week’s founder interview, we’re bringing you Scott Patterson from Tumble.

Without further ado…

Who are you and what do you do?

I’m Scott Patterson and I founded Tumble in 2019 with a mission to modernize the laundry industry. After serving 11 years in the United States Marine Corps, I was trained to be diligent about my own laundry as well as my fellow Marines. Upon leaving the marines, I moved into a friend’s apartment in San Francisco where was shocked to see dirty laundry rooms with broken machines, stolen clothes, and unreliable customer service. Coalescing my extensive military training with my passion for technology as a means to improve quality of life, Tumble was born with the goal of modernizing this highly-desired amenity. Tumble first launched in San Francisco in 2019 and has since scaled across California, with plans to be in 200 cities and 25 major metros by June 2023. My experience assembling highly-specialized teams has proven successful as I continue to identify and partner with experts in the field. As the organization’s leader, my focus remains on product innovation, talent acquisition, partnership development, and expansion efforts as the team continues to grow.

What problem does your product/service solve?

The way we do laundry hasn’t changed in decades, no one, whether you have your own washer and dryer or go to a laundromat, enjoys it. That’s why we went after the most affected area of the market first, shared laundry, and created Smart Laundry. Using this network we are piloting new ways of doing laundry for everyone, including a networked pickup/delivery model that will fully launch in the near future.

What are you most excited about right now?

Automation is one of the most exciting things of the time we are living in. Things that are dull, dirty, or dangerous are being automated away every day. I believe that real estate is in a position to take advantage of this new wave of automation, as they live at the foundation of the atom-based world. I believe in the near future, you will see micro-factories and micro-farms sprout up across different types of urban basements as an answer to the multiple supply chain issues we face, who knows, maybe you will even see an automated laundry room. This is such a cool time to be working in proptech.

What’s next for you?

Ending laundry day, for good.

What’s a cause you’re passionate about and why? 

I’ve been active with charity: water since I heard about it in 2019. Such a great cause, with a huge impact. I’ve seen so many charities where 80% goes to the bottom line and 20% of the funds actually get put to work. Water’s model from day one was to have 100% of funds go to water projects, and I am thrilled to be able to support the team in accomplishing so much.

Thanks to Scott for sharing his story. If you’d like to connect, find him on LinkedIn here.

We’re constantly looking for great real estate tech entrepreneurs to feature. If that’s you, please read this post — then drop us a line (community@geekestate.com).

The post Meet The Real Estate Tech Entrepreneur: Scott Patterson from Tumble appeared first on GeekEstate Blog.

[Editor’s note: Originally published on the Thomvest Ventures blog.]

I’m excited to release Thomvest’s 2022 real estate technology market map, which includes more than 275 companies operating within the residential real estate segment. This is the fourth update to the market map and includes over 70 new companies this year — a testament to the pace of entrepreneurship in this category.

This market map real estate technology companies operating across every phase of the home purchase value chain. These companies have collectively raised more than $35B in venture capital, and range from seed stage businesses to public companies.

Much has changed over the last year in the housing sector — a sharp rise in interest rates has flipped market sentient from frenzied to fearful. Following record home price appreciation over the last two years, housing sales have largely stalled and mortgage originations are expected to decline by more than 40 percent year-over-year. Many real estate technology companies generate revenue on a transactional basis, meaning a softening housing market has a direct impact on revenue growth expectations. As a result, public real estate technology companies across every category have traded down meaningfully from their 2021 peak.

So amidst this doom and gloom, where do we find silver linings? First, I continue to be a deep believer in the positive role technology plays in making real estate transactions more efficient, more data-driven, and more equitable. The long-term vision of these businesses remains compelling despite recent headwinds. The problems technology companies are solving are systemic in the real estate sector, and are relevant no matter the macroeconomic environment. Second, the fundraising environment for real estate technology companies continues to be robust despite year-over-year declines in transaction volume. Venture capital activity in the sector has reached nearly $7 billion through the first three quarters of 2022 and total fundraising for the year is on track to be surpass $9 billion.

At Thomvest, we’ve long been excited about the opportunity to bring technology into the real estate segment, and have been fortunate to partner with many great companies. We believe that challenging market environments ultimately create durable companies, and we are excited to continue investing in the real estate vertical. The pandemic highlighted the role technology can play in the real estate transaction experience. In addition to tailwinds around technology adoption in real estate, we’re particularly excited about a few areas within the housing value chain:

New core infrastructure in mortgage, from borrower acquisition to servicing

The mortgage industry has faced several headwinds this year — rising interest rates, limited housing supply, and record-high home prices impacting affordability. After two record-setting years of loan origination volume, the mortgage industry is contracting, sharply. Non-bank mortgage lenders on average lost $82 per loan in Q2 2022, according to the Mortgage Bankers Association. To survive, lenders must do more with less resources, and they will turn to technology partners that enable automation, delight customers and drive down cost. These companies will directly benefit from the last decade-plus of venture funding in the mortgage technology industry — they will have their pick of best in class technology across point-of-sale, underwriting, loan origination, loan processing, closing and servicing systems. A better technology stack will allow lenders to originate loans more cost-effectively — and to ultimately evolve into more agile organizations that can thrive despite the inherent cyclicality of the mortgage sector.

I also believe that now is the time to innovate on new products in the home finance category. While the 30-year mortgage is a cornerstone of American housing, too many prospective homeowners have been blocked from purchasing a home amidst rising home prices, rising interest rates, and declining credit availability. There are a growing number of startups building “hybrid products” that blend renting and owning, or create a smoother onramp between the two — like Landis, Up&Up & Divvy. Other platforms are emerging that enable co-ownership of real estate, like Fractional. I’m excited to spend time with companies innovating at the intersection of housing and finance over the coming years.

The rise of “indie” real estate investors, enabled by new ownership models

This year’s market map includes a new section — “Rental Investment Platforms” — which represents the many startups enabling individual investors to invest in real estate. These platforms lower the barriers to entry for investing in real estate. And collectively, they offer several distinct “flavors” for ownership — from fractional, passive investing opportunities (Arrived, Lofty), to single-asset purchases (Roofstock, Doorvest), to real estate fund investments (Fundrise, Keyway).

Combined with a burgeoning ecosystem startups in the rental management space (like Baselane, Obie and Mynd), landlords are now equipped with a powerful set of tools for building a portfolio of investment property, at any scale. Ultimately, individual investors will be able to create rental portfolios similar to the way they build stock portfolios — giving more Americans a new way to build wealth within the real estate asset class.

A few relevant links:

• A high-resolution version of the market map can be accessed here.
• The full list of companies included in this market map is available here.
• Please note that while I try to be as comprehensive as possible when compiling these maps, I will inevitably miss several great companies. If you’d like to add a company for future inclusion on the market map, you the form to do so is available here.
• My commercial real estate market map is available here. I plan to publish a 2022 update to this map next month.

The post Market Map: 275+ Real Estate Technology Companies Transforming Today’s Housing Market appeared first on GeekEstate Blog.

REACH UK is run by Second Century Ventures, the strategic investment branch of the National Association of Realtors. The program aims to increase the use of promising new technology in the real estate industry and its accompanying sectors like financing, banking, and insurance.

Selected applicants will receive…

• Access to mentors from real estate, venture capital, and technology sectors
• Assistance with navigating the global property industry
• Speaking opportunities at conferences, trade shows, and networking events (like Propertymark, CREtech London, and EA Masters)
• Opportunities with media and academic organizations
• Access to a global network of like-minded entrepreneurs, including 180+ REACH portfolio companies and program sponsors

To learn more about the UK program, set up a meeting with the team. Applications close on October 14th, 2022.

Apply Now

The post Apply for REACH UK 2023! appeared first on GeekEstate Blog.

[Editor’s Note: Geek Estate Offers are special offers for members of the GEM]

Once again, CREtech is bringing together leaders in the commercial, residential, PropTech, and climate tech industries for two days of speaking engagements, networking opportunities, and industry insights in the incredible New York City.

Register if you want to…

• Get off of zoom and back to in-person networking opportunities with other innovative-driven industry professionals.
• Have one on one meetings with other attendees in the Tech Connect Lounge.
• See any of the 78 speakers discussing the future of real estate technology on the main stage, innovation stage, or the new Ask Me Anything Stage.

By downloading CRETech’s app you can start networking ahead by viewing the attendee list, sending direct messages, and setting up 1:1 meetings during the conference.

Don’t miss out on a special Commercial Observer & CREtech Power Briefing, talks about building the Metaverse, and other glimpses of future CRE technology.

See more of what registering has to offer.

GEM members receive 20% off! (check the CREtech New York 2022 entry on the GEM events calendar for the coupon code, or ask us)

REGISTER NOW

The post Last chance to get 20% off CREtech NYC October 12th-13th appeared first on GeekEstate Blog.

The Sitzer v. NAR antitrust lawsuit has the potential to turn an industry-accepted compensation construct on its head. At stake in this case is whether four commission-sharing rules within the National Association of REALTORS® Handbook and Code of Ethics subscribed to by all REALTORS® amount to price-fixing. While I won’t get into all of the details of the case (you can read about it here if you are so inclined), anyone whose business relies, in some shape or form, on agents earning cooperative commissions is smart to consider the possible outcomes of this case.

How buyer agent commissions work today

In current practice, the listing agent is typically promised a commission from the seller of a home, and then lists the home on the MLS for other agents to see. A key detail here is that the NAR Handbook, Section 2-G-1, requires that a listing on the MLS must come with a blanket offer of compensation to any agent who secures a buyer for the home. Meaning: a portion of the commission paid by the seller of the home to their agent also compensates any agent who represents the buyer of the home without discrimination as to how well that agent performed their services to the buyer. A high-performing buyer’s agent who provides great service to their clients earns the same on a home sale as a buyer’s agent who opens the door and fills out a contract once, never to be heard from again.

How could the Sitzer suit change commissions?

In the event of a negative verdict for NAR, there’s a possibility of no real impact on the industry. Fine print gets added to listing agreements, some sales objection scripts are slightly updated, but business continues as normal while cooperative commissions continue to be offered most of the time. Northwest MLS in Washington has already taken a step in that direction. However, there’s also a possibility that consumer advocacy groups like CAARE (or, just, people on social media interested in home buying) see an opportunity to drastically change the way the game is played. And that’s where preparation becomes important for anyone in the industry.

Fear unlocked

Some agents and brokers are rightfully concerned about how the result of the NAR antitrust lawsuit could shake up their business. At real estate industry events and in online networking groups, I hear chatter about how detrimental a change to cooperative compensation policies might be to agents, especially those who work primarily with buyers. A recent comment about this case in a group I’m in read “It will destroy our industry as we know it. Also many people will never get the opportunity to buy a home.” But I can’t help but think that reaction is a little… dramatic.

This wouldn’t be the first industry to face such a change

A while back I was looking for a personal financial advisor and found myself researching the difference between two options: Do I want a fee-based advisor, or a fee-only fiduciary, and what is the difference? Since at least 1983, financial consumers have had the ability to make this choice when determining whose service was best for them. In many ways, the fee-based advisor model is analogous to the current model of buyer broker compensation. For both, commissions are received by the agent/broker from a party that is not their client as a reward for consummating the sale of something, without regard to their skills, experience, service level, or performance. In contrast, a fee-only fiduciary is paid directly by their client, and usually the compensation model rewards good performance or is directly correlated with hours worked on a client’s behalf.

But it wasn’t an industry-ending change

Since 2006, the number of FINRA-registered investment brokers (typically fee-based advisors) has only fallen 1% overall; the biggest portion of that decrease occurred during the 2009 financial crisis. With 600,000+ investment brokers in the US, evidently there is still plenty of business to go around even with fee-only fiduciaries as their supposed competition.

How agents and brokers should prepare for a potential change to commissions

So what should real estate agents and brokers do to prepare for a potential outcome of the lawsuit that results in a change to who is the source of their paycheck? Clearly, the most important thing here is to provide real value to their clients. While everyone in the industry knows how hard most buyer’s agents work, having that work enhance the client’s direct experience will become ever more important.

Look at it from another perspective

Agents would begin to more frequently consider how asking a client to print, sign, and scan a contract might be an annoyance to their client over an e-sign program. And it can be those little things that make or break the decision for a client to want to pay for a particular buyer agent’s services.

One of the reasons we built Zenlist was to provide agents with a tool that would streamline the home buying experience between agents and their clients. We find that most agents using Zenlist are enthusiastic about how much the platform improves their ability to efficiently organize listings with their buyers, communicate information, schedule showings, and set up touring schedules in a shared, collaborative space. But I do wonder how many of them recognize why it is that their buyers are opening the Zenlist app more than twice per day and looking at over 30 listings a week. What is the buyer experiencing and how has this tool, provided by their agent, helped them with the tedious process of searching for a home?

One of the outcomes to the Stitzer v. NAR antitrust lawsuit could be that agents will always be evaluating the buying process from a second set of eyes: their client’s perspective. The client could become the one signing the paycheck after all. Of course there is always some resistance to change, but like most other industries in the US, value served equals value pays out.

The post Real Estate Agents as Fee-Only Fiduciaries: The Way of the Future? appeared first on GeekEstate Blog.

Recession: Likely
Correction: Maybe
Crash: Unlikely

Recession

Housing Recession = Loss in Construction Jobs

In the last 10 years, home builders have been busy.

But, housing supply doesn’t have a cartel like oil suppliers have OPEC.

So, most builders & many city councils got overzealous & overbuilt inventory.

As a result, months of supply from new construction is >400% that of resale units!

So now, builders are stopping new projects while trying to sell off current projects.

Once builders start trimming jobs en masse, construction will see a housing-related recession.

And since construction jobs are a material part of overall jobs, we could a national headline recession as well.

BUT

Currently, we project:
12% Appreciation in 2022
4.2% Appreciation in 2023

4 reasons why home prices will keep growing

1. Massive undersupply

2. Decreasing supply

Supply from resales will keep decreasing because 90% of mortgage holders have a <5% mortgage. Most will become a landlord instead of selling their home.

3. High residual demand

4. Conservative lending

The evidence is clear

And…

But, some cities are at a high risk

Some might correct by 5-10%. Then, they’ll quickly bounce back.

Almost none will crash by 20% (excluding seasonality).

Why? Some cities have massively overbuilt housing inventory.

The post Recession ≠ Correction ≠ Crash appeared first on GeekEstate Blog.

[Editor’s note: Originally published in the GEM as a Weekly Radar entry.]

SYMBiHOM is a company in the Bay area that designs prefabricated garage to ADU conversionprefab kits that take less than 4 weeks to install. Based on the garage dimensions, ADUs can be a studio, 1-bedroom, or 2-bedroom living unit with a full bathroom and kitchen. The solution increases workforce housing, homeowner income, multifamily living and aging in place with income. The company plans to scale from 80 conversion kits sold in 2022 to 4,000 in 2026. Interested in investing? They are running a crowd funding campaign here.

Here’s a before/after:

The company’s founder, Rebecca Möller, was the latest guest on the Rethink Real Estate podcast: Listen in to the entire episode here.

Garage to housing conversions is a topic we’ve covered before (GEM members only link). After seeing SYMBiHOM, I’m even more convinced of the opportunities coming down the pipe to bring housing units online.

The post Converting the Garage appeared first on GeekEstate Blog.

In this week’s founder interview, we’re bringing you Dalip Jaggi from Revive.

Without further ado…

Who are you and what do you do?

Hey, I’m Dalip! I’m the co-founder of Revive Real Estate – a real estate solutions company that is focused on ways to help homeowners maximize the value of their home equity. This is really just a fancy way of saying, I like to help homeowners be smart in their real estate decisions so that they can build better futures for themselves and their families. That’s very important to me.

What problem does your product/service solve?

Revive was founded to help home sellers maximize the profit of their home through pre-sale home renovations. Since our inception, we’ve grown and built additional solutions to help sellers and buyers buy, live, and sell their homes in the smartest possible way. We never want to see homeowners lose out on hard-earned equity just because they don’t have the proper resources or knowledge to do it themselves.

What are you most excited about right now?

In this down market, I’m the most excited to help homeowners build home equity. I think what most people don’t know is that the average home was built 35 years ago, which means most homes in America have a lot of deferred maintenance and are used very differently today than they were 30+ years ago. By reworking kitchen spaces, formal living rooms, etc., there is a real opportunity to build home equity and build wealth for homeowners across America. And the best way to do this is through renovations. The renovation experience has received little to no updates over the years; Revive has changed this.

What’s next for you?

I’m excited about our future product roadmap because it takes our current program offerings and builds on them. It’s really going to allow homeowners to take advantage of their real estate options, no matter where they are in the process. Buyers, owners, and sellers will benefit greatly.

What’s a cause you’re passionate about and why? 

I’m incredibly passionate about helping non-profits level up their marketing, so much so that I founded a non-profit called Forge54. We help non-profits who don’t have a lot of money to put into marketing spend, develop marketing materials that highlight their cause. Forge54 is made up of 100 local marketing professionals who donate their time and skills over the course of a non-stop 54-hour period. One weekend yields massive results. We had to pause it due to COVID but will be resuming in 2023.

Thanks to Dalip for sharing his story. If you’d like to connect, find him on LinkedIn here.

We’re constantly looking for great real estate tech entrepreneurs to feature. If that’s you, please read this post — then drop us a line (community@geekestate.com).

The post Meet The Real Estate Tech Entrepreneur: Dalip Jaggi from Revive appeared first on GeekEstate Blog.

They say time is money, which means time is our most valuable resource as landlords. In addition to being a real estate investor and landlord myself, I’m a CEO, an entrepreneur, a husband and a father. I am always, always, always looking for tools and technology that can help me streamline my workflow and give me more time to focus on the bigger picture. 

When I first started out investing in rental properties and managing them myself, nothing drove me crazier than fumbling through stacks of receipts every month and using spreadsheet after spreadsheet to try and keep track of each property. The problem was only exacerbated as my portfolio continued to grow. While property management software is certainly the ultimate technology tool, I find that many of my colleagues aren’t taking advantage of some of the simplest tools out there. Some of the most basic technology can have the biggest impact when it comes to taking back your time. 

• Email templates: You’re already using email, but are you using your platform to its full potential? It will take a bit of effort on the front end to get things set up, but using email templates and automated email responses is an easy way to quickly respond to frequently asked questions. You can use an auto response to provide key information that potential tenants can review while they wait for a formal response, or use templates for common correspondences that you can easily access to reuse over and over. If you find yourself writing the same email or copying and pasting the same message, there’s an easier option. 
• E-signatures: If you still find yourself waiting for mailed documents or meeting in person to sign lease agreements, you’re wasting your own time. If you are currently using a property management software platform be sure you are taking advantage of this feature, but programs like Adobe, Docusign or even your local landlord association also typically offer the ability to send documents out for electronic signatures. This can speed up the lease signing process significantly. 
• Online payments: Waiting for a check for rental income should be a thing of the past, but it’s still more common than you might think. Having tenants make rent payments in an online format not only saves time, but tends to increase the chances your tenants will pay rent in full and on time due to ease of access. Between credit card payments, ACH payments, electronic cash payments, etc., you have a variety of options depending on what works best for your business. There may be a small fee associated with collecting online payments, but it’s likely worth the investment for how much time you’ll save in the long run.
• Automatic reminders: Setting up emails or text messages to remind your tenants to pay rent or notify both parties of a one-time charge will take another mundane task off of your plate as a landlord. You could even consider customizing reminders for routine tasks like inspections or regular maintenance duties. Your job will be much easier after eliminating the need to remember hundreds of routine tasks throughout the year. 
• Syndicated rental listings: Create one great rental listing for a vacancy and save time by listing it to multiple rental sites simultaneously. The more the better in this case, but do a bit of research on which sites are most popular for your target market. Be sure to list out frequently asked questions in the ad and go into detail about the application process to avoid phone calls and emails from unqualified tenants – your future self will thank you.
• Tenant portal: Typically setting up a tenant portal requires some sort of property management software, but you’re guaranteed to save a substantial amount of time by creating a place where tenants can self-manage important information. Instead of a phone call, email or text from each tenant, your renters will be able to put in maintenance requests, set up automatic payments, check their account details and payment history – all without a single interaction with you directly. 

When we’re busy, it’s easy to get stuck in a rut and avoid doing the research required to change things up. I promise if you take the time to reevaluate your workflow and look into what tools, programs and software are available to you (often for free!), you’ll regain control of your time and overall find greater success in your rental business.

The post The Simple Tech Tools That Have Saved Me The Most Time As A Landlord appeared first on GeekEstate Blog.

The industry will convene in Los Angeles for iOi, the two-day conference on September 28th and 29th (next week!!), at the JW Marriot L.A. Live. NAR’s venture capital arm, Second Century Ventures, will present the Pitch Battle competition. Each entrant will conduct a live, 4-minute pitch on their product or service, followed by a 4-minute rapid-fire question-and-answer session from a panel of judges.

The 12 Pitch Battle contestants were recently announced:

Overview of each of the companies:

• Agently: An AI-powered coaching and productivity platform that helps real estate brokers recruit, train and retain agents. Agently reinvents the traditional CRM concept by embedding action-based coaching to gamify the marketing and sales process for agents.
• Arx: Building the decision-making engine for the real estate industry with a mission to catalyze the development of an equitably built world. The Arx platform automates the entire process of sourcing and evaluating potential investment and development projects.
• CubiCasa: Its technology is used in 172 different countries and has helped create over 1 million floor plans to date. CubiCasa provides technology for the real estate, appraisal, and mortgage industries and is on a mission to digitize real estate.
• Fractional: A full-service marketplace for friends and investing communities to co-own real estate together.
• Inspectify: Through its vertically integrated product offering, Inspectify enables scale for property acquisitions through our nationwide network of home inspectors and contractors. Using proprietary inspection software, Inspectify offers custom inspection templates and API access for findings that result in higher quality data, faster SLAs, and lower operating costs in acquisitions.
• Pacaso: Curates luxury listings with premium amenities and high-end contemporary interior design, offers one-eighth to one-half ownership with integrated financing, and, after purchase, professionally manages the home and supports seamless resale.
• Prisidio: Provides a cloud-based vault to securely store, organize and share life’s essential documents and information with your family and those you trust.
• RentBase: An all-in-one platform helping residential real estate automate their leasing workflow and discover sales within their rentals.
• Residently: Simplifies renting a home by building a world where renters can find their next home months in advance of a move, secure it and set it up – all within minutes. Residently started by building an enterprise SaaS business with brokers, property managers and institutional landlords who use the platform to improve their renter experience and profitability.
• Revive: With a mission to guide home sellers through renovations to sell their property for more, they enable homeowners to make the right updates without the upfront cost and uncertainty associated with home improvements.
• Stake: Builds renters’ savings with no fees or debt accumulation and empowers today’s owners to create financially safe and secure rental communities. Renters can earn cash back and build savings through financial tips and tools.
• Symba: Makes financial well-being easy for real estate agents by combining customer relationship management with embedded banking. By giving agents more financial transparency and matching their unique, on-the-go lifestyles, Symba helps agents grow their business more effectively from anywhere.

Interested in attending next week? Below is a registration link good for 30% off!

REGISTER NOW

The post iOi Pitch Battle Participants Announced appeared first on GeekEstate Blog.

[Editor’s Note: Below is the full text of our 225th Weekly Transmission, originally delivered direct to the inbox of more than 600 GEM members on August 31st, 2022.]

Demographics are changing rapidly in the US, and business leaders are scrambling to ensure their organizations reflect these changes. As the focus on diversity, equity, and inclusion (DEI) sharpens, it’s important to understand that these pursuits should not be viewed as purely altruistic.

Companies that prioritize diversity, equity, and inclusion outperform their competitors in earnings before interest and tax. According to a recent McKinsey report: “Companies in the top-quartile for ethnic/cultural diversity on executive teams were 33% more likely to have industry-leading profitability.

The report also found that, “Companies in the top-quartile for gender diversity on executive teams were 21% more likely to outperform on profitability and 27% more likely to have superior value creation.”

The younger generation of consumers is diverting their dollars to businesses that demonstrate diverse, equitable, and inclusive values. Work teams that are more diverse consistently outperform their homogenous counterparts 87% of the time. It’s clear that in addition to addressing social issues, DEI efforts are also good for business.

A DIVERSE UPBRINGING
As a Filipino American growing up in a predominantly White community in the San Francisco Bay Area, I dealt with racism many times. I also saw other forms of bigotry stand in the way of people’s goals.

I grew up in a real estate family that operated a San Francisco-based real estate brokerage founded by my aunt, Virginia Buban, in the early 1970s. Virginia never married or had children, so I was like a son to her and was her broker-in-training. I worked open houses, answered phones, and watched her intently as she interacted with clients, absorbing everything I could.

I witnessed firsthand the obstacles my aunt had to endure. Being an immigrant, being a person of color, being a woman in a male-dominated industry—all of these barriers set her up for failure. But she overcame those challenges. And I believe she was able to do so because of her traits, not in spite of them. Being marginalized is extremely trying and, at times, can create despair and heartache. But it also brings out courage, grit, and tenacity: the very qualities that make successful entrepreneurs.

Those experiences with my aunt, combined with my lived experience as a minority and my decades of industry experience as a real estate broker (and now venture capitalist), have taught me that there are four essential traits a startup founder needs to survive and thrive:

1. Extreme resilience
2. Highly competitive nature
3. Unconventional problem-solving
4. Rapid adaptability

Unsurprisingly, entrepreneurs from marginalized communities tend to possess these attributes in spades. This is what inspired me to start Twenty Five Ventures (25v).

25v’S WHY
Two years ago, I set out on a journey to find and invest in other entrepreneurs like me—people who’ve faced bigotry in its various forms and who’ve been judged for being different. Our fund doesn’t just target non-White founders. We aim to invest in businesses headed by people from all demographics, including race, creed, gender and gender expression, sexual orientation, ethnicity, national origin, religion, and lower socioeconomic backgrounds. The fund was started by three partners who are minorities themselves—people who have walked in the shoes of the founders they invest in.

While I believe that a strategy to invest in diverse businesspeople can be profitable, we also seek to address the astounding disparity between VC funds funneled to White male founders versus marginalized founders. A recent NPR article underscores the inequity of private equity (PE). It highlights both the need for diversity on the equity side and the lack of investment in diverse companies.

“When [just] 16% of investment partners at VC firms are women, three percent are Black, and four percent are Latinx, it’s not shocking that women founders have received [only] 1.9% of venture dollars so far in 2022,” said Rebekah Bastian, the CEO and co-founder of OwnTrail.

The article further illustrates the gulf between investments in minority and non-minority founders. WeWork founder and former CEO Adam Neuman announced a new startup and was quickly given $350 million by a major VC firm.

In contrast: “Black-founded startups in the US raised less in Q2 2022 in aggregate ($324 million) than Adam Neumann received in a single check from Andreessen Horowitz,” said Bastian.

One white founder received more VC funding than all Black entrepreneurs did in the same period!

DEI IS THE PATH FORWARD
Many American corporations continue to struggle with diversity, especially at the highest levels of leadership, and their bottom lines are suffering as a result. That’s why it’s so important to invest now in young companies and startups that make DEI a foundational part of their organization. After all, it’s easier to build a diverse company from the ground up than to “retrofit” diversity and inclusion into an established, rigid corporate structure.

I wholeheartedly believe that successful DEI within PE has proven that diversity is a winning strategy. Diverse founders bring individual resilience, a highly competitive demeanor, and a passion to think outside the box—all traits that are often nurtured in marginalized and diverse communities, and that are essential to adapt in today’s market.

25v exists to make it so that within proptech—a sector with immense potential for underrepresented founders to make their mark—increasing wealth and financial independence for a segment of the population is increasingly possible.

My aunt grew her business to a multimillion-dollar brokerage that had 52 agents with land developments and housing projects across Northern California. What she didn’t have was access to resources and a network that would have helped her scale the business. Her company might not have qualified for VC funds, but the questions remain: What if founders like her did have access to funding and networks? What if PE and VC firms were actively seeking to invest in entrepreneurs like her? How would her trajectory have changed? Given wider influence, could her unique worldview have more positively shaped a real estate industry notoriously skewed against diverse and marginalized homeownership.

It’s time we find out how diverse voices change the calculus of proptech’s future.

the GEM BRIEFING

A PRIVATE GROUP OF INDEPENDENT THINKERS, FREE FROM SPONSORED MESSAGES, SALES PITCHES AND NOISE

There are four parts to membership:

• Long-form articles covering the spectrum from shipping container co-living spaces to the battle for listing acquisition in the first iBuyer world war (Weekly Transmission). Examples: A Waking of the iBuying Elephant, Certainty as a Service, The Undisrupted: A Portrait of Blue Collar America, Requiring Employers to Assist Employees with Housing Would Unleash Innovation, and Filling the Emerging iBuyer Vacuum.
• Curated real estate, startups, & built world links & analysis blended with out of the box ideas (Weekly Radar).
• Special reports (a category review of Small Landlord Prop Mgmt Software, Blueprinting Proptech startup analyses, & Ecosystem Intelligence).
• Networking opportunities with 500+ innovators from across the globe through the private forum & in-person gatherings.

GREAT THINGS ARE HAPPENING

• Transmissions and Radars have become a trusted signal for industry news and analysis.
• Articles and ideas are regularly discussed in product & strategy meetings.
• Our virtual workgroups bring together a diverse mix of C-Suite execs to discuss real issues.
• We’ve introduced members to new vendors, partners, and friends.

With a mission to attract the 1,500 most forward-thinking, and diverse, innovators, we’re looking for the best and brightest in all the land...

Membership is $139 / quarter

READY TO JOIN RIGHT NOW?

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The post The Importance of Backing Diverse Proptech Founders appeared first on GeekEstate Blog.

[Editor’s Note: Below is the full text of our 226th Weekly Transmission, originally delivered direct to the inbox of more than 600 GEM members on September 8th, 2022.]

In spite of new software innovations, the property management industry continues to focus on the number of units under management because it’s beholden to the property management overlords who made it so. Property management software companies have historically operated in a silo, with few partnerships, zero flexibility, and poor integrations. The result was increasing per unit costs, frustrated and confused property management companies, and a lack of access to the services required to help property managers win consumers and add revenues.

Property management software is no longer the be-all and end-all, or rather, the gate-keeper of the rental management market. The rapidly evolving world of software ecosystems requires a more open and holistic view. A more unified strategy—with tools, partnerships, and services—could change the industry paradigm altogether.

There are early signs of the big, multinational, acquisition-heavy enterprise property management software such as RealPage and Yardi leaning in toward a more complete offering. Recognizing that their focus around property management specific tools isn’t enough to keep up with growing market demands, they have tried their hand at acquiring consumer and service related solutions (e.g. RealPage’s acquisition of Modern Message). The problem has been their ability to integrate these new solutions to cost effectively and seamlessly distribute them to existing customers.

Alfred has a forward thinking solution within the space, offering a more complete set of services, but primarily acts as an internal offering to their own managed portfolios. Meanwhile, resident experience apps such as Sugar and Pinata remain dependent on the relatively commoditized, accounting-specific management software that lead to the very problems of expense and misalignment the industry faces today. While in the right frame of mind, their dependencies will forever be the hill they have to climb.

Does simply adding features on top of a potentially flawed business model create an inevitable plateau on innovation? When engaging with fee-based management companies, does imposing unit based pricing perpetuate further misalignment? This competitive landscape has already provided a dangerous outcome of higher per unit fees. It has allowed a continued state of “walled garden” due to the systems we use rather than offering an ecosystem of connections, access, and opportunities these systems should enable.

Software built solely to support property operations is now over-built and far more expensive than necessary. Companies like Zumper, Sentral, and Adam Neumann’s Flow are driving toward a more flexible, service-oriented narrative because it’s clear that our industry demands a better solution. They are among those, rightly, stepping beyond the traditional definition of property management software

The days of Rental Ecosystem Management Software, or REM, are here. And, LEASERA will help property managers thrive in the new world order.

INTENTIONALITY FOR A BETTER FUTURE
LEASERA is adding value across long-term rental portfolios for property management companies and investment groups with consumer loyalty, an intelligent leasing-as-a-service platform with an integrated marketplace of supportive tools, and direct-to-door service providers (such as dog walking, food delivery and ride share). Consumers gain rewards, empowerment and flexibility.

An ecosystem solution allows for saving on sourcing and integration costs while offering more convenient access for renters with lifestyle-as-a-service. For example, partnering with a furniture rental company to provide more affordable furniture packages for newly moved-in renters by removing the “ecosystem access” tax. Loyalty programs support engagement of community-activated house cleaners and service pros, while providing additional income for community members to further instill loyalty to their place of residence. A better understanding of applicants allows leasing agents to deliver a more personalized approach. Remaining flexible to changing market demands has allowed us to extend appreciation, roughly $2,600 per year and growing (via internal LEASERA findings), to renters who prefer to get something for their investment.

The days of fostering loyalty through nothing more than simple gift cards are over.

By thinking differently, we are helping our customers uncover new sources of revenue and time savings, while minting happier, more fulfilled renters with affordable, high-quality services—all at a far lesser cost than the historic (and highly misaligned) per unit fees. By not haphazardly bolting pieces of software together as was once the norm, and being more intentional about how software builds towards the future from day one, LEASERA is able to deliver an entirely different cost structure.

This is a massive paradigm shift.

Not unlike updating Apple software, the future is one where property innovation occurs with the click of a button and without an increase in per unit fees. That will enable property managers to have a complete view of their business, and provide renters with a seamless, constantly improving experience. As a result, the isolation created by property management software is no longer an expectation—property managers will now be part of a larger ecosystem that also benefits service professionals and renters.

A NEW LIFE ON LEASING
In today’s ever-changing world, it’s important to stay ahead of the curve and adapt to new market demands. By understanding the role of property managers in the larger ecosystem and by being aware of new consumer demands, emerging property management software companies are better positioned to take advantage of new opportunities not possible before.

It’s always been the role of property managers to create stronger partnerships and provide great service to renters. Now it’s also affordable and efficient.

It’s time property managers take control of the vast new opportunities within the rental market and to stop letting property management software dictate what’s possible.

This is a new era of opportunity without being managed by property management software. This is REM.

[Photo by garrett parker on Unsplash]

the GEM BRIEFING

A PRIVATE GROUP OF INDEPENDENT THINKERS, FREE FROM SPONSORED MESSAGES, SALES PITCHES AND NOISE

There are four parts to membership:

• Long-form articles covering the spectrum from shipping container co-living spaces to the battle for listing acquisition in the first iBuyer world war (Weekly Transmission). Examples: A Waking of the iBuying Elephant, Certainty as a Service, The Undisrupted: A Portrait of Blue Collar America, Requiring Employers to Assist Employees with Housing Would Unleash Innovation, and Filling the Emerging iBuyer Vacuum.
• Curated real estate, startups, & built world links & analysis blended with out of the box ideas (Weekly Radar).
• Special reports (a category review of Small Landlord Prop Mgmt Software, Blueprinting Proptech startup analyses, & Ecosystem Intelligence).
• Networking opportunities with 500+ innovators from across the globe through the private forum & in-person gatherings.

GREAT THINGS ARE HAPPENING

• Transmissions and Radars have become a trusted signal for industry news and analysis.
• Articles and ideas are regularly discussed in product & strategy meetings.
• Our virtual workgroups bring together a diverse mix of C-Suite execs to discuss real issues.
• We’ve introduced members to new vendors, partners, and friends.

With a mission to attract the 1,500 most forward-thinking, and diverse, innovators, we’re looking for the best and brightest in all the land...

Membership is $139 / quarter

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The post Property Management Software is Dead: Welcome to REM appeared first on GeekEstate Blog.

[Note from editor: The “Mastermind Showcase” highlights companies and news from members of the GEM. Today’s showcase: Inspectify]

Many lenders won’t offer financing on a home without a satisfactory home inspection, so it’s important for real estate professionals and homeowners to find the right home inspector. 

Enter Inspectify: A YC-backed managed marketplace streamlining the home inspection booking process for homeowners, real estate agents, brokerages, and investors by aggregating vetted inspectors. Their free online booking platform provides multiple options from their 1000+ inspectors across the US. Real estate professionals can onboard their own preferred inspectors, consolidating their home inspection appointments to one place. Agents can even set up a branded landing page for their buyers to book an inspection from a list of their preferred inspectors. Each inspection report is standardized and provides customizable data points of interest even when working with multiple inspectors. Reports also include a free repair estimate cost for each issue pointed out.

Serves REITs and other investors such as Roofstock, Doorvest, and RocketOffr.

What we like: For investors acquiring and selling large portfolios, Inspectify delivers a centralized dashboard to track inspection workflow covering all fifty states. 

Learn More

The post A Home Inspector Marketplace appeared first on GeekEstate Blog.